Bull Market vs. Bear Market?
What You Need to Know
The stock market can seem like a game of chance sometimes,
But what if I told you that this so-called “randomness” is actually a well-studied lifecycle?
You can’t have failed to notice that the economy goes through booms and busts,
and these are known as bull markets and bear markets for our investments.
What Is a Bull Market?
It’s a time when investors see their investments skyrocket in value and can find the most opportunities for profit-making since everything is booming.
What Is a Bear Market?
The mechanisms here are very similar to those found in a bull market, except for everything happens in reverse.
Bull markets and bear markets shouldn’t be looked at in isolation — they both form part of the economic cycle.
Understanding Bull Markets and Bear Markets
then, after it reaches its peak, it creeps into a bear market.
During the economy’s expansion, the bull market is in full swing;
As we’ve discussed already, bull and bear markets can refer to any kinds of investments, assets, or commodities,
so at any given moment, there may be a bull market for cryptocurrencies yet a bear market for stocks.
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